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The US economy will grow by an extra $7 trillion over the next decade, according to estimates from the CBO, according to Business Insider. The CBO said the additional growth will be driven by an influx of immigrants. “More workers mean more output and that in turn leads to additional tax revenue,” CBO director Phillip Swagel said.
Bloomberg: “California’s economy has proven relatively resilient, first through the pandemic and now through the current period of elevated inflation. So much so, that the Golden State’s gross domestic product is poised to overtake Germany’s as the fourth largest in the world after the US, China and Japan. It had already leapfrogged Brazil (No. 7) and France (No. 6) in 2015 and supplanted the UK (No. 5) in 2017.”
“Last year, President Xi Jinping seemed all but invincible. Now, his push to steer China away from capitalism and the West has thrown the Chinese economy into uncertainty and exposed faint cracks in his hold on power. … Chinese policy makers became alarmed at the end of last year by how sharply growth had slowed after Mr. Xi tightened controls on private businesses, from tech giants to property developers. Meanwhile, China’s stringent Covid lockdowns, part of Mr. Xi’s approach to handling the crisis, have ramped up again as Covid cases surge, hurting both consumer spending and factory output.”
“Economists at Goldman Sachs raised their GDP growth expectations for the U.S. economy to 8% for 2021 in a note to clients on Sunday night,” Axios reports. “Not only would 8% annual growth denote a stupendous turnaround from the coronavirus pandemic, it would significantly outpace the firm’s growth expectations for the U.S. from as recently as late 2020.”
Goldman Sachs revised its earnings estimate for the year for U.S. companies to $165 per share, representing 0% growth in 2020, as a result of the coronavirus, CNBC reports. This is a dramatic break from the consensus forecast of Wall Street, which still calls for earnings to climb 7% this year.
“The U.S. economy grew at a healthy 3.1% rate in the first three months of this year, but signs are mounting that growth has slowed sharply in the current quarter amid slower global growth and a confidence-shaking trade battle between the United States and China,” the AP reports.
White House economic adviser Kevin Hassett said that the partial government shutdown “could suffocate the economy this quarter if it persists, leading to zero percent growth,” Politico reports.
“The U.S. economy expanded at a 3.5 percent pace in the third quarter as consumers opened their wallets, businesses restocked inventories and governments boosted spending, marking the strongest back-to-back quarters of growth since 2014,” Bloomberg reports.
The U.S. economy grew at a brisk 3 percent pace in the April to June quarter, the Commerce Department said Wednesday — a report likely to be welcomed by President Trump, who has repeatedly vowed he can propel the country to faster growth, the Washington Post reports.
“U.S. employers hired at a steady clip in November while the unemployment rate fell to the lowest level in nine years, signs of enduring labor-market growth that will likely leave Federal Reserve officials on track to raise interest rates later this month,” the Wall Street Journal reports. “Nonfarm payrolls rose by a seasonally adjusted 178,000 in November from the prior month, the Labor Department said. The unemployment rate dropped to 4.6% from 4.9% in October as some people found jobs while others dropped out of the workforce. At 4.6%, the rate is the lowest since August 2007. Economists expected 180,000 new jobs and a jobless rate of 4.9% in November.”